Vows to Keep Rates Low for Longer Under Its New Flexible Inflation Targeting Regime.
At the conclusion of the regularly scheduled meeting of its Open Market Committee, the Federal Reserve confirmed its decision to keep the target range for the federal funds policy rate between 0 and 0.25% to help the U.S. economy recover from the coronavirus pandemic.
The Fed also provided strong forward guidance, promising to keep its policy rate at virtually zero until economic expansion is well underway. In a released statement the Fed said it expects to maintain this target range until the U.S. achieves maximum employment and “inflation has risen to 2% and is on track to moderately exceed 2% for some time.”
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